This is a proposal to cease the distribution of weekly $RARI rewards to applications building on the protocol.
Currently, there are over $900,000 USD equivalent in $RARI rewards being distributed every week, mainly to artists and collectors on Rarible.com. Although this was a great way to bootstrap buying and selling on Rarible.com in 2020, this rewards mechanism is no longer an effective tool. Wash trading is a rampant problem, but ultimately, it is a poor allocation of resources. In addition, a huge portion of $RARI recipients actually SELL their $RARI following the drop, which has negative pressure on the $RARI price.
As we transition to funding more projects (see proposal here), we need to start thinking about the best use of $RARI, such that our token economy doesn’t get crippled.
Alongside all the reasons Eric mentioned, the fact that OpenSea is the monster in the market and their liquidity begets more liquidity at the moment kinda no matter what we do with $RARI incentives to buy and sell on Rarible.com.
I agree with this, not only as a RARI holder, but also for the sake of long-term success of Rarible protocol. As you’ve mentioned, $RARI rewards worked for a certain period of time, but no longer works effectively now. Continuing $RARI rewards will jeopardize the market value of RARI, which is crucial to maintain the ongoing process of funding projects. This proposal is a necessary step to a better direction.
Can you please give us an exact date of when will this be implemented? Also, is there someone who’s keeping the accounts of how much we’re spending as a DAO (eg. monthly)? If yes, please share it with us publicly so we can track it, as investors.
Hi Eric, As this was voted Yes, do you have an estimated date of implementation? I don’t see any announcements on Rarible.com or gov.Rarible.org. I have almost 40 clients that are all asking me for answers and I’m not sure what to tell them. Thanks a lot.
